OCTOBER 2018 European Monthly Research Report: Non-Traditional Sectors

A Focus on Senior & Student Housing in Europe

  • Over the last few years, institutional investors have increased their exposure to non-traditional or alternative property types, which represented 14% of total direct real estate investment volumes in Europe in the first half of 2018.
  • Senior housing and student housing offer an attractive yield premium of 150bps over standard residential investments, while benefiting from the same defensive character.
  • New data mining methodologies allow investors to better identify micro locations where supply-demand imbalances are offering the most attractive opportunities in the student and senior housing sectors.
  • Student housing in France is seeing a big increase in new supply, while some changes in the educational system might limit new demand and increase turnover.
  • Senior housing offers attractive investment opportunities to investors due to strong demand fundamentals, high occupation rates, low occupier turnover and a diversified revenue model for the operator.
  • Existing German senior housing has so far focused more on a higher level of medical care, which might leave more room for lower care and more affordable alternatives in future.


Sources: JLL, CBRE & AEW Research

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The information and opinions presented in this research piece have been prepared internally and/or obtained from sources which AEW believes to be reliable; however, AEW does not guarantee the accuracy, adequacy, or completeness of such information.

Photo of Hans Vrensen, CFA®, CRE

Hans Vrensen, CFA®, CRE
Head of Research & Strategy, Europe

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